Bridging Finance

Bridging finance is a specialist short term loan that can be used for a variety of purposes. This loan is also known as Bridging Loan.

These loans are attractive because they are processed quickly, the lending criteria are not as strict as high street lenders and they can be obtained against properties that are of non-standard construction or in poor state of repair.

In addition, bridging loans are often the cheapest option when a loan is required for the short term.

Why Do You Need Bridging Finance?

Bridging finance is a great way to solve short term problems rapidly. Most people use bridging finance for the following: 

  • To bridge the gap between when you purchase a new property while waiting for the sale of the existing property.
  • Auction purchase
  • Renovating a property
  • Building a property on a plot of land
  • Quick purchase of property
  • To help meet short term cash flow problems in a business
  • To pay inheritance tax
  • To Purchase under-market-value property
  • To prevent repossession of a property
  • For Rebridging a Property

Why Are Bridging Loans So Popular?

  • Less strict lending criteria: Unlike high street lenders, bridging lenders do not always ask for proof of income and they will also lend against properties in poor state of repair.
  • Loans are processed within a short time: Bridging loans can be put in place within a short time, which is ideal when you are strapped for time.
  • Comparatively cheaper than other options: High street loans can appear cheaper because they have lower interest rates, but the costs of arrangement fees and early redemption  charges add up, making them expensive for the short term. This is where bridging finance comes in, because the lower set up costs mean that it is actually cheaper.